Kiev, Ukraine, Dec 12, 2013
— IFC, a member of the World Bank Group, has finalized an $80 million financing package designed to help fuel retailer Concern Galnaftogaz improve its distribution facilities and storage infrastructure, expanding access to high-quality fuel and creating hundreds of jobs in Ukraine.
The financing package includes $15 million from IFC and a syndicated loan of $65 million provided by Sberbank Europe AG and ING Bank. The loan is part of $180 million facility arranged by IFC and the European Bank for Reconstruction and Development. It is one of the largest foreign investment financing packages raised by a Ukrainian company this year. The Black Sea Trade and Development Bank is a co-lender in this facility.
“Yet again, our partnership with leading international financial institutions, including IFC, is providing tangible benefits for the development and growth of our company,” said Vitaly Antonov, Concern Galnaftogaz’s president. “We will drive our investment program further, continuing to improve our own performance and contributing to improved distribution infrastructure throughout Ukraine.”
Rufat Alimardanov, IFC Regional Head for Ukraine and Belarus, said, “Galnaftogaz is a good example of how operational efficiency, and improved social and environmental standards can help a company raise significant funding from foreign investors. IFC remains committed to supporting private infrastructure in Ukraine.”
Concern Galnaftogaz will use the investment to expand its network of gas filling stations in Ukraine’s regions. The constructions of over 50 filling stations working under a brand name OKKO will help create and preserve over 700 jobs.
IFC has a long-standing relationship with Concern Galnaftogaz. This includes several investments, beginning in 2004. IFC has also helped the company implement one of Ukraine’s first corporate governance codes. Currently, the company owns and operates a network of about 400 fuelling stations.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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